Kraken to layoff 1,100 people to ‘adapt to current market conditions’
The U.S.-based crypto exchange announced it intends to lay off roughly 30% of its staff due to the turbulent market conditions.
U.S.-based crypto exchange Kraken has announced laying off 1,100 staff members, equating to 30% of its workforce, as a response to weathering crypto winter.
The blog post, signed by CEO Jesse Powell, expressed regret in arriving at this decision. However, Powell said it was necessary to “adapt to current market conditions.”
Staff affected by the cut were notified this morning, with Powell saying the company will assist in finding new work opportunities for those impacted.
Crypto winter bites hard
Powell said Kraken had tripled its workforce over the past few years to cope with rising demand. The reduction in headcount reverts numbers back to a year ago.
In explaining the reasons behind the decision, blame was laid on macroeconomic and geopolitical factors, which have negatively impacted financial markets.
“This resulted in significantly lower trading volumes and fewer client sign-ups. We responded by slowing hiring efforts and avoiding large marketing commitments.”
However, with these factors continuing to bite down hard and all other options exhausted, the decision was made to reduce workforce numbers.
Departing staff will “receive comprehensive support,” including 16 weeks of separation pay, performance bonuses for eligible individuals, four months of healthcare, and support with visa issues and work placement opportunities.
Despite the news being a blow for the company and the crypto industry in general, Powell said the cuts would ensure the company’s survival into the future.
“I’m confident the steps we are taking today will ensure we can continue to deliver on our mission which the world needs now more than ever before.”
With that, he signed off, saying he remains bullish on crypto and Kraken.